Concept explainers
American Auto is evaluating their marketing plan for the sedans, SUVs, and trucks they produce. A TV ad featuring this SUV has been developed. The company estimates each showing of this commercial will cost $500,000 and increase sales of SUVs by 3% but reduce sales of trucks by 1% and have no effect of the sales of sedans. The company also has a print ad campaign developed that it can run in various nationally distributed magazines at a cost of $750,000 per title. It is estimated that each magazine title the ad runs in will increase the sales of sedans, SUVs, and trucks by 2%, 1%, and 4%, respectively. The company desires to increase sales of sedans, SUVs, and trucks by at least 3%, 14%, and 4%, respectively, in the least costly manner.
- a. Formulate an LP model for this problem
- b. Sketch the feasible region.
- c. What is the optimal solution?
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Chapter 2 Solutions
Spreadsheet Modeling and Decision Analysis: A Practical Introduction to Business Analytics
- Mulling over M & M In the 1930s Spanish Civil War, Forrest Mars saw soldiers eating chocolate pellets with a hard shell to carry these chocolates easily without the risk of melting. This gave him an idea, and the M&M’s Plain Chocolate Candies were introduced in the USA market in 1941. The product was a hit with the American soldiers and U.S. Army became its first big customer as it gave the soldiers an option to carry chocolate in tropical climates without melting. In 1949, the brand introduced the tagline “Melt in your mouth, not in your hand,” and this led to a considerable increase in its sales because it delivered on a solid insight, especially from parents who did not like to see their children making a mess when eating chocolate. M&M’s are button-shaped chocolate-filled candies with hard shells surrounding a filling which varies depending upon the type of M&M’s. The product is available in various colors – red, yellow, orange, brown, green, and blue. Initially,…arrow_forwardMulling over M & M In the 1930s Spanish Civil War, Forrest Mars saw soldiers eating chocolate pellets with a hard shell to carry these chocolates easily without the risk of melting. This gave him an idea, and the M&M’s Plain Chocolate Candies were introduced in the USA market in 1941. The product was a hit with the American soldiers and U.S. Army became its first big customer as it gave the soldiers an option to carry chocolate in tropical climates without melting. In 1949, the brand introduced the tagline “Melt in your mouth, not in your hand,” and this led to a considerable increase in its sales because it delivered on a solid insight, especially from parents who did not like to see their children making a mess when eating chocolate. M&M’s are button-shaped chocolate-filled candies with hard shells surrounding a filling which varies depending upon the type of M&M’s. The product is available in various colors – red, yellow, orange, brown, green, and blue. Initially,…arrow_forwardExplain the term Divisibility?arrow_forward
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- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning